BRATISLAVA, September 12, (SITA) -- The Economy Ministry views the unstable legislative environment as one of the main obstacles to doing business in Slovakia, states a report on the condition of the business environment in Slovakia with proposals for its improvement, prepared by the Economy Ministry. As examples, the report points to tax laws, which after dozens of amendments are extensive and non-transparent particularly for small entrepreneurs. Another serious problem pointed out by the report is the weakness of law enforcement, therefore it suggests minimizing the number of long lasting business lawsuits.
According to European Union standards, the majority of lawsuits must be settled within twelve months, reads the report by the Economy Ministry. Furthermore, the role of providing export loans and insurance should mainly be emphasized for medium-sized businesses, in contrast with the present state. This would enable an increase in the share of small and medium-sized enterprises in Slovak exports to European Union countries from the current 40 to 50 percent to 60 percent.
In order to support doing business in Slovakia the Economy Ministry suggests harmonizing investment terms for domestic and foreign investors. The report also suggests creating space for domestic entrepreneurial subjects to establish themselves on foreign capital markets. In the labor market field the ministry suggests extending opportunities for shorter working time, part-time jobs and personnel leasing. The domestic market should support the continued use of a reduced value-added tax rate at least over the period 2004-2006 in line with the agreed terms of Slovakia’s accession to the European Union. Another step should be the completion of administrative capacities of the Slovak Trade Inspection with special emphasis on the qualifications and professional skills of its employees.
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